Performance Improvement 2005. Indicators of Welfare Dependence: Annual Report to Congress 2004


The Welfare Indicators Act of 1994 requires the Department of Health and Human Services to prepare annual reports to Congress on indicators and predictors of welfare dependence. The “2004 Indicators of Welfare Dependence”, the seventh annual report, provides welfare dependence indicators through 2001, reflecting changes that have taken place since enactment of the Personal Responsibility and Work Opportunity Reconciliation Act in August 1996. This 2004 report uses data from the Current Population Survey (CPS), the Survey of Income and Program Participation, and administrative data to provide updated measures for several dependence indicators. Selected highlights of the report include: 1) In 2001, 3.1 percent of the total population was dependent in the sense of receiving more than half of total family income from TANF, food stamps, and/or SSI. 2) Although the 2002 dependency rate cannot yet be calculated, preliminary data suggest it will remain approximately 3 percent. 3) The drop in dependence parallels the more well-known drop in AFDC/TANF and food stamp caseloads. For example, the percentage of individuals receiving AFDC/TANF fell from 4.6 percent to 1.9 percent between 1996 and 2002. 4) In an average month in 2001, more than half of TANF recipients lived in families with at least one family member in the labor force.

PIC ID: 7281.6; Agency Sponsor: ASPE-OHSP, Office of Human Services Policy; Federal Contact: Swenson, Kendall, 202-690-6888; Performer: Office of Program Planning and Evaluation, Bethesda, MD

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